Railway infrastructure operator PKP Polskie Linie Kolejowe S.A. (PKP PLK) has signed an agreement Bank Gospodarstwa Krajowego (BGK), Poland’s only state-owned bank, on the issue of bonds worth PLN 2.2 billion (aprox. EUR 530 million). This issuance of bonds for PKP is the largest deal realized so far by BGK, in the framework of the “Polish Investments” program.
The funds raised will be used to finance PKP PLK’s ongoing investment program, currently one of the largest in PKP’s history. The company is working on the modernization of some 3,200 km of railway lines. In addition to its own financial resources, the company also attracted loans from the European Investment Bank, the state budget (e.g. Railway Fund).
“PKP PLK plans to carry out record investments worth more than PLN 7 billion (EUR 1.7 bn) in 2014. We use various financial instruments to efficiently modernise the rail infrastructure“, stated Remigiusz Paszkiewicz, CEO of PKP PLK.